- NZD/USD edges lower from fresh weekly highs at 0.6978, bias higher as long as pair holds 5-DMA support at 0.6925.
- The pair has retraced above 50% Fibo of 0.6347 to 0.7485 rally.
- Bullish RSI divergence on daily charts supports upside.
- Stochs are on verge of rollover from oversold which if done would provide further confirmation.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-extends-recovery-from-multi-month-lows-break-of-5-DMA-seen-good-to-buy-dips-466713) is approaching TP2.
Recommendation: Book partial profit at highs. Raise trailing stops to 0.6920. Hold for targets.
Support levels:
S1 - 0.6925 (5-DMA)
S2 - 0.6862 ( Dec 23 low)
S3 - 0.6875 ( trendline support)
Resistance levels:
R1 - 0.70
R2 - 0.7012 (23.6% Fib of 0.7485 to 0.6865 fall)
R3 - 0.7019 (20-DMA)
